FTX Employees Discover $65 Billion Backdoor Benefitting Alameda, Report Ignored and Whistleblower Fired

FTX U.S. employees found a backdoor allowing Alameda to have a negative balance of up to $65 billion.

The backdoor used customer funds and was not possible for other FTX users.

Employees reported the discovery to their boss, who discussed it with Sam Bankman-Fried's lieutenant.

The issue was never resolved. The team leader who raised concerns was fired.

The backdoor is a key part of the prosecution's fraud case against Bankman-Fried.